Evaluate how average total and marginal costs change

Assignment Help Business Economics

Reference no: EM1355078

Consider a theater that has seating for 1,200 people. For the past several days, the show has been sold out. Tickets currently cost $5, but the owner wants to increase the ticket price. An increase in price will probably lead to lower attendance. What will that do to profit margins? In this Discussion, you will explore the impact of a change in the total output of goods and services on other economic factors.

Based on your reading for this week:

Evaluate how average, total, and marginal costs change as the output of a good or service of your choice increases. Can economies of scale be maintained despite high start-up costs? When can diseconomies of scale be expected? Are marginal costs high or low relative to the average total costs?

Reference no: EM1355078

Questions Cloud

Preliminary analytical procedures : Discuss how you would perform preliminary analytical procedures and recommend ways to mitigate engagement risk and audit risk.

Calculate the magnetic forece on the proton : A uniform magnetic field of magnitude B= 1.2 teslas is directed toward the bottom of the page in the -y direction as shown above. At time t=0, a proton p in field is moving in the plane of the page with a speed v0= 4 x 10^7 meters per second in a ..

Source of cash flows : Ratio measures the proportion of total assets financed by the firm's creditors - measure of a company's performance and condition.

Draw an ie crow-s foot e-r diagram for entities : Draw an IE Crow's Foot E-R diagram for the entities DEPARTMENT and EMPLOYEE and the 1:N relationship between them. Assume that a DEPARTMENT.

Evaluate how average total and marginal costs change : Evaluate how average, total, and marginal costs change as the output of a good or service of your choice increases. Can economies of scale be maintained despite high start-up costs.

Forecast accounts receivable : Accounts receivable are $45,000 and are directly proportional to total sales. The sales forecast for next year is $125,000, which represents a 5% growth over the current year. The forecast accounts receivable would be:

Multiple choice problems on markets and capital gains : Marginal analysis states that financial decisions should be made and actions taken only when, and The agency problem may result from a manager's concerns about any of the following,

Additional means of incorporating data : What additional means of incorporating data can be used for advances on the coalition, such as by building neighbourhood awareness or having a yearly report on progress from your coalition's efforts?

Audit evidence-evidence and reliability : Classify the evidence by source into one of four categories: (1) directly from outsiders, (2) indirectly from outsiders, (3) internal but validated externally, and (4) entirely internal.

User Account

All Pages